August 18, 2014 Sustainability and CR at Novelis: Closing the Loop Georgia Recycling Coalition Conference Brooke Beadle, Sustainability Manager 2. Make sure the image is behind all objects on the page. Text / color bars/ color boxes/logos 3. DELETE THESE INSTRUCTION BOX WHEN DONE Page 1
World s Largest Aluminum Roller Page 2
World s Largest Aluminum Recycler Page 3
Global Footprint 11,200 $9.8b 2,786 Kt 24 9 Employees Revenues Shipments Operations Countries Revenues Page 4 and 2014 shipments Novelis Inc. based on FY 2014 Results
Global Footprint North America South America Europe Asia Employees 3,000 1,800 4,500 1,900 Revenues $3.1 Billion $1.6 Billion $3.3 Billion $1.9 Billion FRP Shipments 958 kt 447 kt 911 kt 640 kt Revenues Page 5 and 2014 shipments Novelis Inc. based on FY 2014 Results
Global FRP Production World Leader in Rolled Aluminum Other 57% 14% 4% 4% 10% 5% 4% Aleris Chinalco, 2% Alcoa Furuk/SLM/TAA Hydro Constellium Novelis #1 Rolled Products Supplier Worldwide Leader in: Can & Auto Rolling Technology Recycling & Closed- Loop Partnerships Total 100% = 20 mt Top 6 = 41% Source: Novelis estimates, 2012 data Page 6
Working Closely with Our Customers on Next-Generation Products Beverage Cans High-End Specialties Automotive 4-5% 6% 30% Long-term Page 7 annual 2014 Novelis growth Inc. rate (CY13-20)
Global Trends That Affect Our Business These Sustainability Trends Point to Increasing Aluminum Demand Economic Development Material Preference Environment Increasing urbanization, modernization of infrastructure, and global wealth Increasing substitution to aluminum from other materials in emerging markets Growing awareness of environmentalism and demand for recycled products Page 8
Increasing Carbon Regulations Western Climate Initiative (WCI) European Union China Switzerland Tokyo US Regional Greenhouse Gas Initiative South Korea Brazil Australia New Zealand South Africa The world is demanding a reduction in carbon emissions Page 9
Evaluating our Carbon Footprint Bauxite Mining Alumina Refining Primary Smelting Ingot Casting Rolling Recycling Remelting 39% Recycled Content 50% Recycled Content 80% Recycled Content Page 10
Material Issues Constrained Resources Population Growth Regulation & Stakeholder Perception Economic Sustainability Sustainable Sourcing Urbanisation Increasing Carbon Focus Environmental Sustainability Reduced GHGs Low Carbon Solutions Life Cycle Social Sustainability Waste Reduction Water Use Supply Chain Page 11
Our Sustainability Vision Long-term profitability driven by aggressive expansion plans Economic Sustainability 2020 Business strategy based on materials, processes & products with minimal dependence on resources Environmental Sustainability Benefiting society through innovative, low carbon product solutions and engagement with our communities Social Sustainability Page 12
Achieving Our Vision Transform our business model to a closed-loop and low-carbon model Page 13
Our 2020 Sustainability Targets Our Targets Baseline FY07-09 Avg Performance FY13 Targets FY20 Profitability Approximately double FY11 adjusted EBITDA by FY16 $0.6 billion $0.96 billion $2 billion Recycled metal content 80% by 2020 30% 43% 80% in FY14 Energy usage Reduce by 39% per metric ton of sales 46% 12.4 GJ/mt 10.0 GJ/mt 7.6 GJ/mt Water usage Reduce by 25% per metric ton of sales 3.7 m 3 /mt 3.1 m 3 /mt 2.7 m 3 /mt GHG emissions Halve our absolute amount (Scope 1,2 and 3) 21 m mt 18 m mt 11 m mt Landfill Zero Landfilled Waste 60 K mt 56 K mt 0 K mt Safety Zero recordable injuries 1.01 0.60 0 Employees 100% of eligible employees receive annual performance feedback; World-class leadership development program NA In progress Benchmarked in top 10% Community Code of Conduct 100% of operations have local community engagement process Employee and supplier codes rolled out and process in place for noncompliance NA In progress 100% NA In progress 100% Page 14
Our Focus On Recycling Novelis will increase its current use of recycled aluminum from 33% to 80% by 2020 This will remove 10 million metric tons of greenhouse gas emissions from the aluminum product value chain annually. Page 15
Cutting Emissions in Half While Increasing Production 10% 24% Baseline FY07-FY09 21m metric tons Vision 2020 11m metric tons 90% 76% Novelis Recycling and Fabrication Material Inputs Page 16
Investing Nearly $2B in Strategic Capacity Expansions United States ~360kt Korea ~350kt ~265kt Germany ~400kt ~120kt Brazil ~220kt China ~120kt ~190kt Rolling Capacity Expansion Automotive Finishing Line(s) Recycling Expansions Page 17
Building The World s Largest Recycling Network NORTH AMERICA Oswego, NY Berea, KY Greensboro, GA SOUTH AMERICA Pinda, Brazil EUROPE Latchford, UK Norf, Germany Pieve, Italy We are nearly doubling our recycling capacity from 1.2 million metric tons to 2.1 Nachterstedt, Germany million metric tons by 2015 Yeongju, Korea ASIA Yeongju, Korea Ulsan, Korea Pinda, Brazil Page 18
Expanding for The Future World s largest aluminum recycling center to open in October 2014 Page 19
Growing & Diversifying our Scrap Inputs >4 Million Tons 2 Million Tons Non-Can Scrap 1 Million Tons Can Scrap 2011 2015 2020 Page 20
Growing Our Recycled Content 80% GOAL 80% by 2020 33% in 2010 39% in 2012 46% in 2014 50% by 2015 Page 21
Working Closely With Our Customers On Next-Generation Products Driving research and innovation to: find ways for products to be more sustainable, use more recycled content develop products that are more easily recycled recycling process technology Page 22
Novelis is the Automotive Tech Leader Page 23
Lightweighting Through Use of Aluminum in Automotive Lower Energy Use & Lower Emissions Potential 3,000 Litres Fuel Saving over the Vehicle s Lifetime 1 ton of aluminium 20 tons of CO 2 emissions over lifetime of car 24 Page 24
Novelis is a Catalyst for Sustainable Innovation 2014 Range Rover: 100% Novelis Aluminum Weight Loss 700 lbs saved from Aluminum unibody and hang-ons Performance light-weighted Range Rover feels likewise transformed Economy 9% improvement in mpg while cutting 0 to 60 mph by one second Awards the cycle of burgeoning weight and engine power has ended Page 25
evercan New Standard of Sustainability for Beverage Packaging Industry s first independently certified can body sheet Available in North America, South America, Europe and Asia Current guaranteed recycled content of 90% for the body; 70% for the can Ultimate goal: 100% recycled content can First commercial application announced in spring 2014 26 Page 26
First evercan customer Red Hare Brewing Company Page 27
Community Dialogue Evolve our community engagement & philanthropic program To be present in all locations where we have operations To identify and address the needs of the local communities To put focus on areas that relate to our business strategy Safety Math & Science Recycling Page 28
Safety Page 29 The House That Cans Built Greensboro, GA One Novelis Volunteer Month Atlanta, GA
Math & Science FIRST Robotics Peachtree Regional Competition Page 30
Recycling Cans for Kids Wishes with Make-a-Wish Official Recycling Partner of the Atlanta Falcons Page 31 Curbside Value Partnership One More Generation
Thank you for Recycling Page 32